Quite the day today with some high flyers getting slammed pretty good with the overall market moving lower on volume. Whatever the reason stocks moved lower and today’s distribution was led by the Russell 2000. When this occurs we take notice as it is concerning distribution is piling on up on the NASDAQ and this selling is being led by small cap stocks. Our uptrend is certainly under pressure here and it is best to react according to our price signals. On the bright side AAPL closed positive! In the grand scheme of things today is just one day, but we must stick to our time-tested process and act accordingly.
There were quite a few high flyers over the past few weeks. PLUG, BLDP, FNMA, and FMCC to name a few and all four of them took quite a hit. Mind you PLUG is still up big time this month and year, but the price action is certainly not something you want to see. Depending on how you work your exits today is certainly a key day. BLDP moved in concert with PLUG and its low today is important as well. On the other hand, it appeared Fannie and Freddie reversed course as news was released Washington DC was going to make changes. It is important to not worry over not capturing the tops in theses stocks, but to pay attention to your exit strategy.
Commodities are taking a breather as measure by the CRB index (ThomReuters/Jefferies CRB). Copper lead the CRB index lower as the commodity closed lower by 2.6%. Crude oil fell below Par for the first time since February. DBA continued higher as it has closed red three times since the first of February. The move is really interesting to see.
No need to speculate where this market will head next. Follow the process and reap the rewards!
